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Aftermarket Manufacturers Need to Switch to Customized Solutions

27 November 2000

Aftermarket Manufacturers Need to Switch to Customized Solutions, Says Frost & Sullivan

    SAN JOSE, Calif.--Nov. 27, 2000--The booming U.S. economy has been a blessing for many industries, including the North American convertible top, sunroof, floor mat, and seat cover auto aftermarket.
    However, even the most prosperous time in history is no guarantee for success.
    Advancements in car designs and vehicle safety features present significant challenges to participants in the auto aftermarket industry. They must re-design their products to fit these design evolutions.
    New market research from Frost & Sullivan (www.frost.com), "North American Convertible Top, Sunroof, Floor Mat, and Seat Cover Aftermarket," reveals that this industry generated revenues of $516.7 million in 1999. Frost & Sullivan projects this market to grow modestly over the next several years, reaching nearly $650 million in revenues by 2006.
    Fierce competition among auto manufacturers has forced them to differentiate their products from one another, which has led to customized options and upgrades by original equipment manufacturers (OEMs). As a result, segments of the aftermarket industry are compelled to invest more in research and development and a varying inventory to meet these OEMs design changes.
    "The more auto manufacturers differentiate their products, the less aftermarket manufacturers can standardize their products," says Frost & Sullivan industry expert Ben Cotton. "Manufacturers of convertible tops, sunroofs, and seat covers are most affected by vehicle design changes."
    While this development may lead to a decline in the sales of universally fitted products, aftermarket manufacturers that can switch their focus to custom-designed solutions will have a head start against the rest of the competition.
    "Manufacturers are expected to continue innovation in the interest of safety and comfort," says Cotton. "This innovation is expected to drive custom sales while continuing to erode the universal segment."
    Frost & Sullivan presents the 2000 Marketing Engineering Awards to companies that have worked hard to make a positive contribution to the North American convertible top, sunroof, floor mat, and seat cover industry. The Product Innovation Award is presented to Wet Okole. The Product Quality Leadership Award goes to Robbins Auto Top Company Inc. Plasticolor Molded Products Inc. receives the Product Differentiation Innovation Award. Recipients of Market Leadership Awards are Sagaz Inc. in the seat cover aftermarket, Hollandia Sunroofs Inc. in the sunroof aftermarket, and Robbins Auto Top Company Inc. in the convertible top aftermarket.
    Companies that participated within this industry include: Alfa Otto Accessories; Allison Corporation; ASC; Auto Image Incorporated; Auto Xtras; Bestop Incorporated; Carmade; Cover King; Dash Designs; Donmar Enterprise Incorporated; electron Top Manufacturing; Elegant USA LLC; EZ ON Auto Top Incorporated; GAHH Incorporated; Germanex; Hollandia Sunroofs Incorporated; Inalfa Skylite Sunroofs; Intromarketing Incorporated; Jackson Manufacturing; Kool Kooshion Industries; Kraco Enterprises Incorporated; Lux-Liner Seating; Mac Neil Automotive; Maximliner Incorporated; Midwest Marketing Distribution Incorporated; Palm Fibre Coco Mats; Plasticolor Molded Products Incorporated; Rally Manufacturing Incorporated; Remington Industries; Robbins Auto Top Incorporated; Rubber Queen; Saddleman Incorporated; Sagaz Consumer Products; United Five Stars Corporation; Webasto Roof Systems Incorporated; Wet Okole, and Young Sung.